Prestige surpasses mass

The US prestige beauty [1] industry grew 5 per cent in dollar sales in 2013, compared to 2012. Skincare and makeup each experienced healthy gains of 7 per cent, while fragrance dollars remained flat last year, unveiled The NPD Group.

Beauty is among a handful of industries showing growth in 2013,” said Karen Grant, vice president and senior global industry analyst, The NPD Group.

Looking beyond the prestige market, sales within the US mass channel also increased slightly, up 1 per cent for total beauty in 2013, versus 2012 [2]. The makeup category grew the most, at 2 per cent, followed by skincare at 1 per cent, but fragrance struggled with a 6 per cent decline in dollars compared to 2012.

Premium-priced prestige beauty thrives

Value is important to consumers, but premium-priced offerings are thriving in US prestige beauty,” notes The NPD group. Even though sales for the total prestige fragrance category were flat, fragrances priced $100 and over grew 30 per cent in dollars, while face makeup priced at $60 and up increased 28 per cent, and premium skincare for the face gained 15 per cent in dollar sales compared to 2012.

Over the past two years, the average price of prestige beauty products has increased consistently. “Whatever the motivation, consumers continue to be more willing to invest in their beauty products,” said Grant. “The willingness of today’s consumers to spend a little more on their beauty products is a continued opportunity for manufacturers and retailers. It is the right time for communicating the end benefit of investing in better products and service to get the attention of your customer, and delivering on those promises will do the rest,” she added.

In addition to the premium segment, the direct-to-consumer channel helped to drive growth for the US beauty industry in 2013, growing 19 per cent [3].

Shift in prestige fragrances

Beside the rise of premium-priced prestige fragrances, The NPD Group also reports another important shift in the types of scents being purchased. Indeed, sales of woody oriental scents, the second largest fragrance family after floral scents, and smaller segments grew faster than the whole fragrance market in 2013.

Floral fragrances aren’t fading away, but less traditional scents are gaining more of the attention from female consumers than ever before,” commented Karen Grant. “With the emergence of more artisanal scents on the market, women are welcoming the opportunity to experiment and explore different options.

The standalone oriental, woods, citrus, and fruity fragrances are still a small portion of the market, at just 7 per cent of women’s fragrance dollar sales, but they are growing at the expense of the larger segments, including the top selling fragrance family, floral. Woody oriental is the only one of the larger blended fragrance families to experience growth in 2013. Two of the top 5 women’s prestige fragrances sold in the US are part of the woody oriental fragrance family, while the other three in the top five are florals and a soft floral.

The recognizable classics remain strong, but new players are important rising stars to watch,” said Grant. “Today, the opportunity for reinvention afforded by a novel scent coexists with the instant indulgence provided by the classics.